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TDS on rent

CA D Santosh Kumar Patro (Asst. Manager Finance & Controlling) (88 Points)

02 September 2009

Hi, can someone please tell me about Notification or Circular issued by Income tax on deduction of TDS on Rent including Service Tax.

We are paying Rs. 120000/- p.a. as rent, hence not deducting TDS on it. However, since Service Tax is applicable on rent , party is charging Service Tax on Rent, but asking us not to deduct TDS, as there is nothing specified in the Act.

Please guide me, urgently..

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5 Replies

VARUN (PCC STUDENT) (523 Points)
Replied 02 September 2009

tds will be deducted on the amount after charging service tax ...

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VARUN (PCC STUDENT) (523 Points)
Replied 02 September 2009

but if he wants not to deduct tds then he must apply to the assessing officer for not deducting tds or deducting tds at a lower rate as mention in sec. 197 ...

Regards,

Varun Makhija

RITESH KOTHARI (B.COM, FCA, DISA(ICAI)) (778 Points)
Replied 02 September 2009

Circular No. 4/2008, dated 28-4-2008, CBDT

CA D Santosh Kumar Patro (Asst. Manager Finance & Controlling) (88 Points)
Replied 02 September 2009

Dear Mr Kothari

We thank u for your clarification, but in circular 4/2008 itz given tds is not not required to be deduct on service tax , so i got confuse whether the same clarification we will apply for the limit given u/s 194I or any other clarification is there ?